Japan's Mitsubishi Materials buys 30% stake in Chile copper mine
LONDON/SANTIAGO – Japan's Mitsubishi Materials Corp (MMC) has bought a 30% stake in Mantoverde copper mine and an associated copper project from Mantos Copper for $236 million to secure more concentrates for its smelters, the company said on Friday.
The mine, which has 2.1-million tonnes of copper reserves, is owned by a consortium led by British investment company Audley Capital Advisors and Orion Mine Finance Group, which control Mantos Copper.
Mitsubishi, Japan's third-biggest copper smelter, will acquire the minority stake by undertaking newly issued shares and will receive 30% of metal produced.
The partners plan to spend $731-million to expand facilities and build a concentrator to extract and process sulphide ore.
"This transaction is a step forward in Mantos Copper's strategy to expand and extend the life of our high quality copper assets, while lowering its position in the cost curve," Mantos board chairman John MacKenzie said in a statement.
Demand for copper, mainly used in power and construction, is expected to boom in coming years because of its use in electric vehicles, which need twice as much of the metal as those with internal combustion engines.
This has spurred buying activity in South America, which produces most of the world's copper.
Japanese companies have been active in the region, with Sumitomo snapping up 30% of Teck Resource's Chile mine and Mitsubishi holding a stake in Anglo American's Quellaveco operation in Peru.
RBC Capital markets acted as financial advisers for MMC in the deal, which is expected to close at the end of October.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation